Beware of the bad debt credit counseling agency

Warning: Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But be aware that, just because an organization says it is “non-profit,” there's no guarantee that its services are free, affordable or even legitimate. In fact, some credit counseling organizations charge high fees, which may be hidden, or urge consumers to make “voluntary” contributions that can cause more debt.

Warning: Be wary of credit counseling organizations that: charge high upfront, or monthly fees for enrolling in credit counseling, pressure you to make “voluntary contributions,” another name for fees, won't send you free information about services they provide without requiring you to provide personal financial information, such as credit card account numbers, and balances or neglect spending time reviewing you financial situation or refuse to teach you budgeting and money management skills.